tv Power Lunch CNBC October 1, 2013 1:00pm-2:01pm EDT
which makes it harder to trade sp. >> that's the most interesting part, not getting government statistics. it plays out like everybody expects. look, it's acrimonious there, we're used to it already and that's the unfortunate part. >> does it for us. have a great rest of the day. follow me on twitter. "power lunch" starts now. >> we are 13 hours and counting into the federal shutdown. president obama will be speaking in just a few moments. live from the white house out in the rose garden. we will, of course, go to that live. you know, if you're hoping to get a mortgage, you may be in big trouble. diana olick is going to be working that story. eamon javers is on the hill and we will go to him right now as we await the president. he will be speaking, eamon, in the rose garden. why don't you start us off with a scene setter with the president not quite at the podium yet. >> that's right. let me tell you what's going on at capitol hill after last night's standoff the senate has
rejected the house's effort to appoint what they call a conferries to go to a house nate negotiation. the house sent their con ferries to that negotiation anyway and pointed out that there were no senate negotiators in the room with them. the house members said they're extremely upset about that, very frustrated. now at this hour, we've got house republicans meeting in a room in the basement of this building in the house of representatives trying to figure out what the strategy is for the rest of the day. here's the president. >> good morning, everybody. at midnight last night -- can everybody hear me? mike working? good morning. at midnight last night, for first time in 17 years, the republicans in congress chose to shut down the federal government. let me be more specific. one faction of one partyin one house of congress in one branch of government, shut down major
parts of the government. all because they didn't like one law. this republican shutdown did not have to happen, but i want every american to understand why it did happen. republicans in the house of representatives refused to fund the government unless we defunded or dismantled the affordable care act. they've shut down the government over an ideological crusade to deny affordable health insurance to millions of americans. in other words, they demanded ransom just for doing their job. and many representatives, including an increasing number of republicans have made it clear that had they been allowed by speaker ba er baer bane boeh an up or down vote with keeping the government open with no partisan strings attached enough votes from both parties would have kept the america's people's
government open and operating. we may not know the full impact of this shutdown for some time. it will depend on how long it lasts. we do know a couple things. we know that the last time republicans shut down the government in 1996, it hurt our economy. and up like 1996, our economy is still recovering from the worst recession in generations. we know that certain services and benefits that america's seniors and veterans and business owners depend on, must be put on hold. certain offices along with every national park and monument must be closed. and while last night i signed legislation to make sure our 1.4 million active duty military are paid through the shutdown, hundreds of thousands of civilian workers, many still on the job, many forced to stay home, aren't being paid, even if they have families to support and local businesses that rely
on them. and we know that the longer this shutdown continues, the worse the effects will be. more families will be hurt, more businesses will be harmed. so once again, i urge house republicans to reopen the government, restart the services americans depend on, and allow the public servants who have been sent home, to return to work. this is only going to happen when republicans realize they don't get to hold the entire economy hostage over ideological demands. as i've said repeatedly i am prepared to work with democrats and republicans to do the things we need to do to grow the economy and create jobs and get our fiscal house in order over the long run. although i should add, this shutdown isn't about deficits or spending or budgets. after all, our deficits are falling at the fastest pace in 50 years.
we've cut them in half since i took office. in fact, many of the demands the republicans are now making, would actually raise our deficits. this shutdown is not about d deficits it's not about budgets it's about rolling back our efforts to provide health insurance to folks who don't have it. it's all about rolling back the affordable care act. this, more than anything else, seems to be what the republican party stands for these days. i know it's strange that one party would make keeping people uninsured the centerpiece of their agenda. but that apparently what is it is. and, of course, what's stranger still, is that shutting down our government doesn't accomplish their stated goal. the affordable care act is a law that passed the house, it passed the senate, the supreme court ruled it constitutional, it was a central issue in last year's election, it is settled and it
is here to stay. and because of its funding sources, it's not impacted by a government shutdown. and these americans are here with me today because even though the government is closed a big part of the affordable care act is now open for business. and for them, and millions like them, this is a historic day for a good reason. it's been a long time coming. but today americans who have been forced to go without insurance, can now visit health care.gov and enroll in affordable plans that offer quality coverage. that starts today. people will have six months to sign up. so over the next six months people will have the opportunity in many cases for the first time in their lives, to get affordable coverage that they desperately need. now, of course, if you're one of the 85% of americans who already have health insurance, you don't need to do a thing. you're benefiting from new
benefits and protections that have been in place for some time under this law. but for the 15% of americans who don't have health insurance, this opportunity is life changing. let me just tell folks a few stories that are represented here today. few years ago amanda barrett left her job in new york to take care of her parents and for a while she had temporary insurance that covered her multiple sclerosis. when it expired many insurers wouldn't cover her because of her ms. she ended up paying $1200 a month. that's nowhere near affordable. starting today she can get covered for much less because today's new plan can't use your medical history to charge you more than anybody else. sky high premiums forced nancy beagle to choose between paying her rent or paying for her health insurance. she's been uninsured ever since. she pays all her medical bills
out of pocket puts some on her credit card making them harder to pay. nancy says, they talk about those who fall through the cracks. i fell through the cracks ten years ago, and i've been stuck there ever since. well, starting today, nancy can get covered just like everybody else. edwards was laid off from her job. six months diagnosed with a tumor. she couldn't afford insurance on the individual market. she hasn't received treatment yet. her daughter lenase a student at the university of maryland is considering dropping out of school to help pay her mom's bills. starting today, thanks to the affordable care act, treynase can get covered without forcing her daughter to give up on her dreams. these stories of hard-working americans sound familiar to you, well, starting today, you and your friends and your family and co-workers, can get covered too.
just visit healthcare.gov compare insurance plans side by side the way you shop for a plane ticket on kayak or tv on amazon. you enter some basic information, you'll be presented with a list of quality affordable plans that are available in your area with clear descriptions of what each plan covers and what it will cost. you'll find more choices, more competition, and in many cases, lower prices. most uninsured americans will find that they can get covered for $100 or less. you don't have to take my word for it. go on the website, healthcare.gov check it out for yourself and show it to your family and friends. and help them get covered just like mayors and churches and community groups and companies are already fanning out to do across the country. and there's a hotline where you can apply over the phone. and get help with the application. we we
or just get questions answered. the number is 1-800-318-2596. 1-800-318-2596. check out healthcare.gov, call that number, show your family and friends how to use it, and we can get america covered once and for all so that the struggles that these folks have gone through and millions around the country have gone through for years, finally get addressed. let me just remind people why i think this is so important. i heard a striking statistic yesterday. if you get cancer, you are 70% more likely to live another five years if you have insurance than if you don't. think about that. that is what it means to have health insurance. set aside the issues of security and finances and how you're impacted by that. the stress involved in not knowing whether or not you're
going to have health care. this is life or death stuff. tens of thousands of americans die each years just because they don't have health insurance. millions more live with the fear that they'll go broke if they get sick. and today, we begin to free millions of our fellow americans from that fear. already, millions of young adults have been able to stay on their parents' plans until they turn 26, millions of seniors have already gotten a discount on their prescription medicines, already millions of families have actually received rebates from insurance companies that didn't spend enough on their health care, so this law means more choice, more competition, lower costs, for millions of americans. this law doesn't just mean economic security for our families, it means we're finally addressing the biggest drivers of our long-term deficits. it means a stronger economy. remember, most republicans have made a whole bunch of
predictions about this law that haven't come true. there are no death panels. costs haven't sky rocketed. they're growing at the slowest race in 50 years. the last three years since i signed the affordable care act into law are the three slowest rates of health spending growth on record. contrary to republican claims this law hasn't destroyed our economy, our businesses have created 7.5 million new jobs. just today we learned that our manufacturers are growing at the fastest rate in 2.5 years. they have factored in affordable care act. they don't think it's a problem. what's weighing on the economy is not the affordable care act but the constant series of crises and unwillingness to pass a reasonable budget by a faction of the republican party. like every new law, every new product rollout, there are going to be glitches in the sign-up
process along the way that we will fix. for example, we found out that there have been times this morning where the site has been running more slowly than it normally will. the reason is because more than 1 million people visited healthcare.gov before 7:00 in the morning. put that in context, there were five times more users in the marketplace this morning than have ever been on medicare.gov at one time. that gives you a sense of how important this is to millions of americans around the country. that's a good thing. and we're going to be speeding this up in the next few hours to handle all this demand that exceeds anything that we had expected. consider that just a couple weeks ago, apple rolled out a new mobile operating system and
within days, they found a glitch. so they fixed it. i don't remember anybody suggesting apple should stop selling iphones or ipads or threatening to shut down the company if they didn't. that's not how we do things in america. we don't actively root for failure. we get to work, make things happen, make them better, we keep going. in that context i'll work with anybody who has a serious idea to make the affordable care act work better, but as long as i am president i will not give in to reckless demands by some in the republican party to deny affordable health insurance to millions of hard-working americans. i want republicans in congress to know, these are the americans you'd hurt if you were allowed to dismantle this law. americans like amanda and nancy and treynase, who now finally have the opportunity for basic security and peace of mind of health care like everybody else,
including members of congress, the notion that you'd make a condition for reopening the government that i make sure these folks don't have health care. that doesn't make any sense. it doesn't make any sense. now, let me make one closing point. this republican shutdown threatens our economy at a time when millions of americans are still looking for work and businesses are starting to get some traction. so the timing is not good. of course, a lot of the republicans in the house ran for office two years ago promising to shut down the government. and so apparently they've now gottenen their wish. but as i've said before the irony that the house republicans have to contend with is, they've shut down a whole bunch of parts of the government but the affordable care act is still open for business. and this may be why you got
happen republican governors and senators and growing number of reasonable republican congressmen who are telling the extreme right of their party to knock it off. pass a budget. move on. i want to underscore the fact that congress doesn't have to just end this shutdown and reopen the government. congress generally has to stop governing by crisis. they have to break this habit. it is a drag on the economy. it is not worthy of this country. for example, one of the most important things congress has do in the next couple weeks is to raise what's called the debt ceiling. it's important to understand what this is. this is a routine vote. congress has taken this vote 45 times to raise the debt ceiling since ronald reagan took office. it does not cost taxpayers a single dime. it does not grow our deficits by
a single dime. it does not authorize anybody to spend any new money whatsoever. all it does is authorize the treasury to pay the bills on what congress has already spent. think about that. if you buy a car and you've got a car note, you do not save money but not paying your car note. you're just a deadbeat. if you buy a house, you don't save money by not authorizing yourself to pay the mortgage. you're just going to be foreclosed on your home. that's what this is about. it is routine, it is what they're supposed to do. this is not a concession to me, not some demand that's
unreasonable that i'm making. this is what congress is supposed to do as a routine matter. and they shouldn't wait until the last minute to do it. the last time republicans even threatened this course of action, many of you remember, back in 2011, our economy staggered, our credit rating was downgraded for the first time, they go through with it this time and force the united states to default on its obligations for the first time in history, it will be far more dangerous than a government shutdown, as bad as a shutdown is. it would be an economic shutdown. so i'll speak more on this in the coming days, but let me repeat, i will not negotiate over congress' responsibility to pay bills its already racked up. i'm not going to allow anybody to drag the good name of the united states of america through the mud just to refight a settled election or extract ideological demands. nobody gets to hurt our economy
and millions of hard-working families over a law you don't like. there are a whole bunch of things i would like to see passed through congress that the house republicans haven't passed yet. i'm not out there saying, well, i'm going to let america default unless congress does something that they don't want to do. that's not how adults operate. certainly that's not how our government should operate. that's true whether there's a democrat in this office or a republican in this office. doesn't matter whether it's a democratic house of representatives or republican controlled house of representatives. there's certain rules that everybody abides by because we don't want to hurt other people just because we have a political disagreement.
so my basic message to congress is this, pass a budget, end the government shutdown. pay your bills. prevent an economic shutdown. don't wait. don't delay. don't put our economy or our people through this any longer. i'm more than happy to work with them on all kinds of issues. i want to get back to work on the things that the american people sent us here to work on. creating new jobs, new growth, new security for our middle class. we're better than this. certainly the american people are a lot better than this. i believe that what we've accomplished for amanda and nancy and treynase and tens of millions of their fellow citizens on this day proves that even when the odds are long and obstacles are many, we are and always will be a country that can do great things together.
thank you very much, everybody. god bless you. thank you, all of you, for the great work that you're doing, and thank you, kathleen sebelius, for the outstanding work she's doing making sure that millions of americans can get health insurance. thank you. >> there is president obama in about a 20-minute address concluding by saying to congress, pass a budget, end the government shutdown, pay your bills, avoid an economic shutdown. a reference to what he thinks would happen if the debt ceiling is not raised in about two week's time. john harwood with us and eamon javers. john, among the many things that we could talk about here, let me talk about some of the rhetoric that was used there. the president at least a half dozen times referred to this as the republican shutdown. republicans on the hill call it harry reid's shutdown. who's whipping that battle? >> -- winning that battle? >> the president and democrats are winning that battle. you can see it in various ways.
a quinnipiac poll that shows the democrats have the high side of the argument. when you ask people do -- is the reason we have grid lock in washington because president obama lacks personal skills or because republicans are trying to block everything that obama is doing, 55% say it's because republicans are trying to block, 33% say obama. there's no doubt that a plurality at least of the public is going to ascribe the shutdown more to republicans because it is, in fact, republicans who have brought this situation about because of the demands they're making. that doesn't mean however, that there will be effective pressure on those republicans because of the nature of congressional districts in this country. so many republicans and so many democrats live in districts that are overwhelmingly tilted toward their party. that insulates them from political pressure and it's going to be interesting to see the interplay between the national numbers, the national blame and the angst that republican strategists feel, the
speaker feels, versus the protection that individual members of congress have from reaction of people elsewhere. >> you know, eamon, the president made it very clear, several times, that he is not going to negotiate on the affordable care act, that it is a law that has been tested by the supreme court, it is a law that is now put into effect, despite the shutdown, so he's not going to back down. is anybody going to blink? >> well, that's the question, sue, and that refusal to negotiate by the president and democrats is something that really wrangles republicans here on capitol hill. earlier today they appointed conferys to go to a conference committee between the republican controlled house and democrat controlled senate and negotiate and the senate didn't appoint anybody to go to that negotiation so the republicans ended up sitting in a room by themselves trying to negotiate with empty chairs, making the point, though, very visually that hey, we're here to negotiate and it's the democrats who don't want to negotiate with us. very clearly you're seeing an effort here to place blame.
you see the president referring to a republican shutdown, the republicans saying the democrats aren't negotiating with us. both sides pointing their fingers both ways but as john says, the polling shows that it seems clear at least initially where the blame is going to land from the public. the question is whether those republicans feel any political pain from that up here because again, as john says, their districts are so conservative they're elected by such a conservative group. this will play well with the folks who sent these to washington. >> thank you very much. we'll leave it there. we're not by any means going to leave this topic. we will go back to capitol hill for a democrat and republican on how we can potentially break the deadlock and get the government back to work. we'll do that when we return after this short break. ♪
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the market fallout. joining us from capitol hill, representative renee elmers and representative bill pascal, a democrat from new jersey. welcome to both of you. congresswoman elmers the president referred in his remarks there to members of the house republican conference and house -- and senate republicans, who he says are, quote, telling the extreme right to knock it off and move on. who are they? who are those people who are telling the extreme right to knock it off and move on? i haven't heard them. >> i'm not sure what he is referring to. i do believe that is just political rhetoric from our president. actually highlighting the inefficiencies and lack of leadership he has put forward. we've got to stay on defense and in the republican conference we're united. we're fighting together and yes, there is diversity amongst our conference and that's a good thing for the american people. we're here to fight. the worse fears were realized last night. we've now added chaos and economic disaster of obama care
going into effect to now a shutdown which is chaos and economic disaster. >> congressman passcal, the president said, i will not negotiate with congress over its responsibility to pay bills it has already rung up. but uncomfortably, senator obama once voted against raising the debt ceiling when george bush was president of this country. how does he square his position today, with that vote then? >> well, he'll have to explain that. there are two different situations. we've tried over 18 times to have a conference in the last five months on the budget. republicans have been complaining that the senate and democratic senators never passed the budget over the last three, four years. so what happens? we all pass it on time, the house passed their budget on time and then we said let's get the conferries together. we could have had four months of negotiation. this is total bull. if you look at the facts, look at the chronology it is very clear, they planned this from the very beginning and now they
got whatever they can accomplish, i don't know. if you look at what mccain said and peter king said in the house of representatives, they've had it up to their eyeballs. it's not 50 or 70 republicans renegging but it's very outspoken republicans who have always had courage even when we disagree, it doesn't matter. they've had a lot of guts, those two guys. >> we have to leave it there. we lost about 23 minutes of our show to the president there. congresswoman elmers and bill passcal, thank you for being here. >> my pleasure. >> thank you. >> we're going to check in on gold prices. ugly day in the pits for those on the wrong side of this trade. sharon epperson, tracking the action for us at the nymex. hi. >> hi, sue. definitely don't want to be a bull today. gold prices down more than $40, 1285. looks to be around the closing price today and we're seeing the slide that started this morning, not necessarily completely related to the government shutdown although traders say that is an anti-inflationary
move for gold price. add to that the technical momentum after one big seller sold quite a bit in the early morning hours, near the time of the floor opening and that has continued also fitch coming out today saying that 1200 may not be the floor for gold prices going forward. we may see prices go lower in light of the economy and debt ceiling debate. back to you. >> thank you very much, sharon. you know, one sector of the market that's been flying very high this year, pun intended up 40%, ticking higher despite the beginning of a government shutdown. legendary investor bill mason was on "squawk box" this morning speaking about that sector. >> i've heard jim cramer talk about the shutdown a negative for airlines, it is a short term. an opportunity to buy them if they go down very much. >> are the airlines a good buying opportunity. today in our trading session we're up 100 points on the dow jones industrial on the
transports and, of course, the airlines play into that. abigail, technical strategist with the seaport group joins us. the transports are strong. what about the airlines in general as you look at the numbers from a technical and fundamental perspective, do you like them? >> sue no question the airlines are coming off a strong summer for several reasons. positive tail winds if you will. first, capacity has been, you know, very high, planes have been full. second the airlines have been able to charge premium pricing and third, jet fuel has been a neutral. all is priced in the stocks. they've had a beautiful run up. we have possible near term nifs. i think investors may want to consider locking in profits. one stock that stands out is delta air lines. the stock up more than 100% this year. 15% of that just over the last couple weeks after it was addeds to the s&p 500.
i think we see this stock consolidate down towards 19 over the next couple months even correct furtherer. time to take profits. >> taking profits on delta. jim, with tjm institutional services joins us, you happen to like southwest, why? >> i like a lot of the airlines. dell it's one of the ones i like too. when i trade the airline stocks i look at its relationship to crude oil. crude oil has come off a lot over the last couple weeks. it has to it with they're taking out the price premiums built in based on the middle east. airline stocks love breaking crude oil prices provided it's not because people view this as an economic slowdown. i don't think that any of the markets are considering the government shutdown as an enormous deal yet. i cite as evidence the fact that stock market is up 14 today in the s&p. i like some of the airline stocks. i like southwest the best. settles above 1476, technically it looks good and i think it's worth a shot. >> all right. jim and abigail, thank you very much. really appreciate it.
let's check the interest rates scenario. with the stock market on edge about washington, we did see a flight into the treasury market yesterday. right now we do see the yield on the ten-year note holding at just about 2.652%. on the five-year note we're actually at 1.419%. the biggest move in yields today has been in both the shortest end of the curve two-year and five-year note in terms of percentage moves. the dow jones industrial average up 64 points. transports up an even 100 right now. more coming up on "power lunch" on the markets and washington. when ty and i come back. [ indistinct shouting ]
all right. welcome back. we're watching the markets in the midst of the government showdown. bob pisani joins me. >> we should do this more often, shut the government down. >> send your e-mails to bob, not me. >> a broad one, three to one. >> transports are very strong. >> yeah overall nice rally. here's the important thing all the sectors everybody thought
might be weak not happening. not a lot of move when president obama was speaking. the first real government official, high-level official to speak on the shutdown, didn't move the stock market. the sectors people were talking about might be affected. nothing is happening. defense stocks, moody's came out yesterday and specifically said that they are very exposed here and they specifically mentioned lockheed martin and alliance tech systems. no influence here at all. how about mortgages, fha says they're going to continue to approve mortgage applications even though they will have a reduced staff. the ones exposed to first-time home builders, no problems here. ipos, the sec told me yesterday, we have carryover funds and they're going to continue to process ipos. they have to approve any new ipos. three big ones because all brand names, burlington stores, also a couple others, em prior realty,
empire state building and remax. a lot of real estate stuff coming tonight looks fine. >> at least we have an orderly market in which they can price. >> the main idea seems to be the big hope is that somehow we can roll all these deals up, continuing resolution as well as the debate over the debt ceiling, somehow in the next week or so and make a deal. to do that you essentially have to have a continuing resolution another week or so and that's what people are looking for. >> i don't knee. >> seems crazy optimistic to me. >> i think so given the language we're hearing from capitol hill. up town to the nasdaq where we have a strong gain and sheila is handicapping the movers. >> no shortage of optimism here at the nasdaq markets here. the nasdaq composite hitting levels we have not seen since 2000. a lot of big movers to talk about and familiar names, names we had been talking about a lot over the past couple quarters. bioteches, celgene hitting new
record highs. yahoo! that stock a boost from citigroup, under their price target on the stock. the mobile ad momentum the company is seeing. netflix another big winner on the day up as much as 3% after a positive price target from mkm partners. >> thanks very much. your retirement is at risk more and more americans carrying bigger debt into retirement. what kind of debt? and the amounts? we'll tell you. they will surprise you. all that and more when we return. (vo) you are a business pro. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro.
that's why you take charge of your future. your retirement. ♪ ameriprise advisors can help you like they've helped millions of others. listening, planning, working one on one. to help you retire your way... with confidence. that's what ameriprise financial does. that's what they can do with you. ameriprise financial. more within reach. so when you retire you probably expect to be in much of the same boat as your parents. having the house paid off. those days might be over as boomers heading into retirement apparently are carrying large mort gains. so how did boomers get into
trouble? george washington university economics professor ana maria lusardi studied this topic and told us, quote, people have bought larger homes, borrowed more to buy because of lower down payment requirements and we see the debt has increased. the ratio of mortgage debt to the value of their house has gone up but it's not just homes. debt all around for pre-retirees is growing. more than 70% of boomers are holding debt, up from 64% 12 years ago. the median amount for boomers ages 56 to 61, has more than ca dropled from a little more than $6,000 to just over $28,000. this could mean possible delays in retirement and downgrading in terms of their homes. ty, up to you. >> thank you very much. the best of the best north versus south. brother versus brother in the battle for high-end homes. two of the nation's top brokers will take us for a tour of some mega homes in chicago and
dallas. "power lunch" back in a quick 30 seconds. don't go anywhere. coming up on "street signs," the top of this hour, amid all this shutdown noise we have found the best piece of economic news for consumers all day. tune in to find out what it is. value investor bill miller made his case for apple saying it is a no-brainer. what do you think? we've got experts on the case and professor jeremy siegel will
be joining us, still as bullish on the market as before? we'll find that out as well. all those and lots more, ty and sue, top of the hour on "street signs." >> all right. we'll be watching. thank you very much. we'll continue our look this week at extraordinary homes for sale around the country. you got to love this. taking a little vicarious stuff. eye-popping properties fit for a dallas oil baron and to the north magnificent mile homes suitable for chicago billiona e billionair billionaires. her robbie and jamie. all right. folks, welcome. good to have you with us. let's start in chicago, jamie. no start in dallas, robbie, with a place on inwood road asking $19 million. it is a chateau. describe it, tell me why it's so special. >> it's very special. it's in the heart of our estate area, preston hallow, which is just north of downtown by five minutes, ten minutes max. and the house is on five acres
and it's not that often that you find property with that much acreage, that secluded and special and obviously if you look at the pictures of it, the house is mag negative sapts. six bedrooms, 14,000 square feet. it's got wine cellars to video rooms to -- it's magnificent. >> 14,000 square feet. do you happen to know the taxes on it? >> well, you know, our tax rate in texas is about 2.75, so you can do the math. >> i can do the math on that. to the quickly but i can do it. let's move on here and check in with you, jamie. i don't think there's a nicer in town neighborhood than the gold coast in chicago. you got one on east cedar, 5.1 million. >> i do. that's a limestone facade home originally built in 2010. 7800 square feet. we don't have quite the acreage but we have good square footage on that one.
we have walnut flooring in that home. mic deghoul yo designed custom kitchen. theater room, elevator, terrace on the rooftop that has a bar with amazing skyline views and you're going to be a half a block to the lake. >> that is just great. built in 2010, isn't that unusual? those houses are mostly older than that. >> it's kind of -- it's going to fit in nicely with all the homes that have been there 100 years and original kind of chicago barons. the home fits very nicely. >> robbie, back to dallas, i think we've got number three is robinson ranch, about 3.5 acres, asking 25 million. tell me. >> no 3600 acres. >> i'm sorry. oh, i beg your pardon. i misread it. >> 3600 acres in the heart of the hill country which is an hour from austin and an hour a little bit more from san antonio. blanco county.
it has a great river running through it, the cypress river. that's something that's very special because water is at a premium if texas right now. we've been dealing with a drought for several years and to have a spring fed river run through the middle of your ranch is obviously a plus. it has deer, it has hunting, it has -- it's a great respite and it's a great investment. >> this is in the hill country. when was this one built? how long back does this ranch date? >> well, it dates, you know, generations ago. at one point it was owned by governor clements and it's -- the houses on it are more, you know -- they probably were built 40 years ago. >> all right. >> so it's not like historic. >> right. let's go to lincoln park in chicago. tell me about that one, jamie. >> just up the road from the one on cedar. actually at great family neighborhood. really close to some of the most
prestigious schools on the north side. 6700 square foot home originally built in 2006. it's going to give you five bedrooms, 5.5 bedrooms, 12 to 13 foot ceilings throughout the home. gorgeous trim work. and literally walking distance to some of the finest dining you're going to get in chicago. if you choose not to use your professional kitchen. >> guys, we have to leave it there, unfortunately. i know you had one more in museum tower, robbie, in dallas, 4.1 million and another one up near wrigley field, jamie, in chicago, i'm sure folks can look them up maybe on our website or get in touch with you it if they're interested. thank you very much, appreciate it. >> thank you. >> sue, down to you. >> i can see you in that last one, ty, walking distance to all those nice restaurants. beautiful homes. cisco's ceo john chambers getting an 80% pay rise at more than $20 million right now. but the stock has gone nowhere in the past five years and the tech giant is cutting jobs as it
tries to revive its business. is mr. chambers worth it? the power rundown is up next. mine was earned in djibouti, africa. 2004. vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection and because usaa's commitment to serve military members, veterans, and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve.
under armor moving higher after jpmorgan upgraded the stock, pointing to macy's, nordstrom and kohl's. ford shares gaining ground after the automaker reported a 6% increase in september sales. general motors saw its sales fall 11%. gm is down on the trading session, a fractional move to the upside for ford. walgreens rising after reporting fourth quarter earnings that beat street forecasts helped by a rise in generic drug sales and that stock is up better than 4%. up to you. >> thank you. power rundown time.
the subjects today and the first topic is cisco's ceo john chambers receiving a tremendous raise, his salary nearly has doubled from year to year, soaring from 11.7 million to 21 million. is this well deserved in your book? >> well, cisco has definitely benefited under john chambers' leadership. the stock is up about six times. but the company just announced in august it's going to be laying off 4,000 people to reduce costs. it's kind of hard to take that pay raise when doing those kind of layoffs. i don't think it's a good idea. >> how does this fly out there in silicon valley for mr. chambers? >> the optics are just bad on this, tyler. i mean, as julia mentioned, the layoffs of 4,000 people, they're going to be hiring people at the same time, yes, last year's results were poor which is why the salary and benefits were lower a year ago, and it's doubled now. yes, the other depppies of john
chambers percentage wise their packages went up more but this looks bad at a time when cisco is in this spot and unclear exactly how successful they will be responding to challenges like software to find networking. >> another one of these battles, dish and disney averting a house of the mouse back blackberryout. dish threatened to continue carrying disney owned channels including espn. they have come to a short-term agreement but there are talks about a longer term resolution. could this be the next big fight? >> i would predict we're not going to see a blackout. time warner cable and cbs, there were big ads, there was a lot of talk, big conversations in the press leading up to their deal expiring, but this has been pretty quiet, leading up to this deal expiring. i heard that things were going to be settled ahead of time. i'm surprised they had to extend their talks. there's a lot at stake, espn, which is valuable and a busy time of year for sports and the fall tv season. it's in everyone's best interest
to work this out and i would bet disney/abc will get a price increase because the last time had they negotiated this deal was many years ago. >> john, what do you say here? is this one going to be a big fight or are they likely to work it out? >> it looks like dish has the potential to get really, really hurt here. i mean it's one thing losing cbs for people, but espn during this time of year, i mean i don't know if they can afford to risk that. >> all right. john this one for you, we know where you are, we know where you are. it's the wearable tech question for you, wearable tech going to take off. you're at the launch of the mobile and wearables conference in san francisco. what are people talking about? what are you wearing, john, on your wrist? >> well, i'm not actually wearing anything right now, but i've gotten to check out a couple cool things. one like a subwoofer you wear. you can feel the vibration from the sound. another device here that tracks your sleep and tells you exactly what percentage of optimum you're operating in. it's scary for those of white
house lose sleep every now and then. the question is who is going to be benefit. one of the big players like apple or google, who's figured out the right software layer to manage this stuff. itunes for wearables. we'll discuss that more. >> was that you with the head bob going on in that video, john? >> oh, yeah. i was wearing that subwoofer. >> wear -- julia, i think you would look wonderful in a wearable subwoofer. >> i think wearable tech is super cool. there are privacy concerns. but there are already so much data collected from mobile devices. i can't wait to try out a new smart watch. >> thanks very much. guys, we appreciate it. >> u.s. government shutdown. investors don't seem to care. we have three of the biggest winners when we come back. ♪
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better than 2% gain for merck. so the markets really holding in pretty well given the turmoil in washington, ty. >> those small company shares keep rocking. the russell 2,000 at yet another all-time high. that will do it for "power lunch" for a tuesday. >> have a great afternoon. we'll see you tomorrow. "street signs" begins now. the government might be mostly shut down but the stock market is not. stocks are higher even with all the political chaos. we're going to find out why and have your full shutdown playbook ahead. what's wrong with gold? it is taking another huge tumble today. but is it when you should be buying gold during this dysfunction? one stock leading money manager called buying a, quote, no-brainer and the best news you're going to hear about the economy all day, we promise. >> i